A retired couple with limited income was in contract to purchase a home for $1.1M home (downsizing). Their current home was on the market for $2.6M but was not yet in contract. They had a short timeline for closing on their purchase.
CHALLENGE
Due to their limited income, they could not qualify for a conventional loan until they sold their departing residence.
SOLUTION
Due to owning their departing residence free and clear we provided a loan for 100% of the purchase ($1.1M) and crossed the borrower’s current home with their new home as there was plenty of equity to make a low CLTV loan.
RESULT
A bridge loan saved the couple’s escrow and non-refundable deposit. The borrowers paid off the bridge loan completely within a matter of months using the proceeds from the sale of their departing residence.
